Spotlight cast on Temasek

The Straits Times, March 3, 2007
by LEONG CHAN TEIK

NOMINATED MP Eunice Olsen cast the spotlight on government investment company Temasek Holdings yesterday in Parliament, asking about its role and if it could be more forthcoming on its investment decisions.

Speaking during the debate on the Ministry of Finance's budget, she noted that Temasek's investment in Thailand's Shin Corp soured in the past year.

'Perhaps it's a good time to take stock of the lessons learnt, and to consider Temasek's role in the management of Singapore's reserves and how it's carried out.'

She noted the Government's explanation that it neither approves individual investments by Temasek nor second-guesses its risk assessment.

'The question is whether the perception of those whom Temasek would like to do business with, especially in the region, matches the situation described by the Government.'

She asked also if Temasek could do better in its communication with Singaporeans. 'It's not unreasonable for a company that manages our reserves to be more forthcoming in explaining its decisions and sharing its assessment,' she said.

Referring to Temasek's investment in Shin Corp which sparked protests in Thailand, Minister of State (Finance and Transport) Lim Hwee Hua said Temasek will learn lessons from all its deals as any investment company would.

'Let me reiterate that Temasek is accountable to the Government to deliver a good rate of return on its overall portfolio, and not on each and every single investment in isolation.'

Temasek was expected to do well last year and continue to pay dividends to the Government, she said. It would continue to do well this year.

The Government does not influence or interfere with, or second-guesses any of Temasek's individual investments, she said.

Ms Olsen later rose to ask if Temasek's decisions and investments should be debated in the House.

Mrs Lim noted that the Shin Corp deal had been debated in the House last November, and said: 'It's not clear why, if Temasek is to compete for investments as all other investment houses do, it should be subject to different processes than other investment houses.'

She added: 'It's important to note that Temasek was set up as an independent investment vehicle so as not to confuse the issue of what's strategic and national with what's commercial.'